Cattle futures hit four-month low as cash prices slide - CME

17 July 2026

1 minute read

By: Melanie Epp

Chicago Mercantile Exchange (CME) live cattle futures fell to four-month lows on Thursday, pressured by sharply lower cash cattle prices and speculative long liquidation, Reuters reported, citing analysts.

CME August live cattle futures settled down 3.050 cents at 227.075 cents per pound, paring losses after hitting 226.025 cents, the contract's lowest since March 13. October futures ended down 2.725 cents at 223.275 cents a pound.

Both contracts dropped below their respective 200-day moving averages this week, prompting speculative selling. Managed commodity funds hold a sizable net long position in live cattle futures, leaving the market vulnerable to long liquidation.

CME August feeder cattle futures fell 3.350 cents to settle at 346.600 cents per pound.

A steep drop in cash cattle prices over the last two weeks set the tone in the futures market. Slaughter-ready cattle traded in Kansas and Texas this week at $237 to $238 per hundredweight, down $10 to $11 from last week, and down about $18 from two weeks ago, traders said.

Amid a historic shortage of US cattle, feeders have been keeping cattle on feed for longer periods of time over the last two years, allowing them to fatten and produce more beef, said Cassie Fish, analyst and author of The Beef, an industry blog.

But that strategy seems to have reached its limit, and cattle feeders now have heavyweight animals that need to sell, empowering cattle buyers.

"The packer has regained leverage, after losing record amounts of money for the last six months," Fish said.

Beef margins remain deeply in the red, with packers losing nearly $300 per head of cattle, according to livestock marketing advisory service HedgersEdge.com LLC. But cheaper cash cattle prices could stem those losses.

"We were in an unsustainable economic dynamic. Now we are correcting," Fish said.

Wholesale beef prices continued to retreat, as is typical in late July, analysts said. The USDA priced choice cuts of beef on Thursday afternoon at $368.38 per cwt, down $2.90 from Wednesday and the lowest reading since February 20.

Hog futures closed mixed.

CME August lean hog futures settled down 0.050 cent at 100.275 cents per pound, retreating after a climb to 100.925 cents, the contract's highest since May 28. October hogs ended up 0.200 cent at 86.925 cents per pound.

The USDA priced the pork carcass cutout late on Thursday at $102.42 per cwt, up 96 cents from Wednesday.